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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Can Larry Lessig really change congress?

By Megan McArdle
Mar 21 2008, 8:22 AM ET Comment

Dave Weigel reports on the inauguration of Larry Lessig's Change Congress Campaign:

The most interesting part, so far, has been Lessig's argument to conservatives for why we need public financing. First, the idea he semi-endorsed is not full public campaign finance. It is public financing for incumbents, an idea he credits to Paul Begala and James Carville. Incumbents would be prohibited from raising any money, at all, period. Their funds will come from the U.S. Treasury and be a function of how much their opponents raise. If Challenger Jones raises $1 million, Congressman Smith gets a check for $800,000.

Why should conservatives and libertarians support this, given that Lessig accepts a $2 billion estimate of the cost? "Why is government so big?" Lessig asks, rhetorically. "Because Congressmen must get elected. The insidious relationship between the desire to regulate and the need for congressmen to get re-elected drives the expansion of government." Compare that $2 billion cost, Lessig suggests, to a radically shrunken (and less busy) FEC and the diminishment of loopholes and handouts.

Lessig quotes Ronald Reagan on how people vote themselves benefits from the treasury. Lessig agrees with the argument, but not the reasoning. "The problem we face is the problem of crony capitalism. Not wealth pumped down, but wealth pumped up."

This actually doesn't sound like a terrible idea to me. It won't keep the money out of politics--campaign finance laws are as rocks in the stream to the money sloshing around Washington. But it might, at least, keep incumbents from spending 50% of their time trying to raise money for the next race. And it would erode the massive advantage that incumbents usually have in direct fundraising.

It will not, however, much reduce the size of government. Almost all of the money that government spends goes to entitlements, defense, or interest on the national debt, all of which are extremely popular programs. Earmarks tend to be aimed at impressing a state's voters, not its plutocrats. And regulations are as often enacted at the behest of angry but poor activist groups as of rich lobbyists.

Indeed, one thing that might worry conservatives is that this would work. That would leave activist group power--which tends to rest on their mailing list--intact, while eliminating the countervailing force from industry. I'm not siding with business here--I don't like the business lobbies any better than anyone else. But they do provide a check on activist groups which, left to their own devices, would ignore the practical questions about the consequences of their programs.



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